iSuppli slaps $138 unit cost on Palm Pre

By on Apr 29, 2009 at 11:50 AM
Rumor April 29, 2009

iSuppli is certainly the authority when it comes to pegging manufacturer costs in the world of handsets, but its latest report has a giant question mark stamped on the cover. Without actually having a handset on hand, the firm has placed Palm’s cost at approximately $138 per unit to build the Pre. Now, we know iSuppli knows its stuff but we have to take issue with the fact that it reached this conclusion without actually, you know, having a Palm Pre on hand to analyze. Instead, iSuppli based the majority of its calculations on assumptions. Educated assumptions, yes, but assumptions none the less. Regardless, it’s safe to say that the firm is certainly in the right ballpark and the Pre will likely cost much less to build than the iPhone, which runs Apple about $174 per unit. Even if iSuppli’s numbers are 10 percent off on the low end, Palm is still looking at doubling down with each unit sold. Not bad, not bad at all.

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  • MMS

    Let’s hope the price is accurate and that Palm keeps the price of the Pre down. Can’t wait until this thing is out!

  • Miguel

    So do this mean Sprint will have this for under $250?

  • Tony

    It doesn’t really mean anything, but we’re all pretty sure it will be less than $250 after rebate.

  • Dubinsky

    It will probably sell for $669 retail, and possible $349 with rebates. Sprint hits high on prices, especially for this hunk of shit.

  • http://Davidthande.blogspot.com David Thande

    So……I’m beginning to wonder? Does this device exist?

  • Gauntlet Down

    Parts costs are interesting, even estimated ones.

    Palm has other costs associated with the Pre, of course, like the server farms that handle all that WebOS goodness which have some perPre cost as well.

  • backbeat

    If Palm had no contracted suppliers, it may have cost $138/unit. The scribes on iSuppli only account for purely off-the-shelf parts costs, which is less than accurate or respectable.

  • JakeyBoy

    another great attempt by Sprint and Palm to drum up hype…

  • mu$h da great

    I wish they would just release the damn phone already…..or atleast give a definite price tag & release date.

  • gbd

    @jakeyBoy…. yes, as we know iSuppli is owned by Sprint and Palm

  • Greg

    Wouldn’t it just be nice to be able to buy these devices (Pre, iPhone, G1/2, etc.) at Best Buy, Wal-Mart, Target, etc. and sign up with the carrier of our choice. For years we’ve been told by the carriers that due to subsidies they lose money on the handsets. Sure looks more like consumer manipulation.

  • gokmengs

    I don’t think isuppli is an accurate source, yet BGR makes them look credible by posting about any prediction they make. These guys are pricing the pre without even having the device at their posession.

  • HG

    does the Pre have a plastic or Glass screen?

  • Scott

    @HG

    From what I’ve read, it’s a plastic screen. No glass. But who really knows?…

    Posted from BGR Mobile (iPhone) at: Tempe United States

  • ncsustash

    “Wouldn’t it just be nice to be able to buy these devices (Pre, iPhone, G1/2, etc.) at Best Buy, Wal-Mart, Target, etc. and sign up with the carrier of our choice. For years we’ve been told by the carriers that due to subsidies they lose money on the handsets. Sure looks more like consumer manipulation.”

    The cost of the product is more then just production Costs. It has to include development time for software and hardware which is always more expensive then the actual product.

  • kanebb

    @JakeyBoy what are you talking about you sound as dumb as your name look idiot

  • Cedric

    Most likely $600 list and $150 or $199 after rebates.

    Sprint is probably getting them for $300 from Palm.

  • StevenGlansburg

    I’m convinced this phone does not actually exist and will never come out

  • http://www.palm.com Human

    I heard the phone was forged from materials from the planet Zotar on the Cardan 9 system. So the price might be around 580 bleknars and after 150 for 2 yr. agreement and 50 bleknar mail-in rebate, it could be around 300 bleknars. oh btw i hate all things and nothing is good enough for me and im better than you and your wrong and im right. long live King Narlona!

  • JP

    So here is a question for everyone, if we all stopped talking about the Pre (basically killing all hype off), do Palm and/or Sprint would actually give us more info then this crap?

  • Don Louie

    Nobody can tell how much this device based on part cost

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